Assessing the effects of openness on poverty - are the critics right?

This study aims to contribute to the ongoing debate on whether and how globalization influences poverty. Starting out with a detailed discussion of the so-called anti-globalization movement, it shows that the name is somewhat of a misnomer as the movement is neither homogenous nor necessarily anti globalization per se. In a second step, a cross-country analysis is conducted for 80 developing nations to test the impact of globalization on poverty and human development. The results indicate a positive influence of openness on overall per capita incomes. In addition, it appears that there is a positive impact of institutional quality on human development, i.e. higher quality institutions can contribute to poverty alleviation. The findings further confirm a significant influence of openness on institutional quality, implying that by enhancing institutional quality openness contributes to poverty alleviation.